SkyCity Entertainment Group Limited (ASX: SKC) announced equity raising plan to fortify its balance sheet and secure additional liquidity due to COVID-19 uncertainty. Major highlights include the following:
- Plans to raise NZ$230 million through NZ$180 million through fully underwritten institutional placement and NZ$50 million through share purchase plan
- Pro-forma adjusted liquidity of $586 million available after equity raising to fulfil future funding obligations
- Dividend has been suspended till at least 30 June 2021
Skycity expects to retain its investment grade credit rating of BBB- with S&P Global Ratings and plans to redeem NZ$125 million of NZ bonds in early September 2020. Shares of the company have been put on trading halt after the equity raising.
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